The NAIC reports a countrywide average auto insurance expenditure of $1,281.92 for 2023. That historical measure is not a current quote or a uniform full-coverage policy price.
Key takeaways
- Keep the 2023 observation date beside the figure.
- Average expenditure and combined average premium are different measures.
- Use comparable personal offers, rather than the national average, to set a budget.
On this page
The NAIC reports a countrywide average auto insurance expenditure of $1,281.92 for 2023. Its combined average premium for that year is $1,438.60. Those figures answer different questions; neither tells you what a particular driver should pay today.
Use the benchmark as context, then compare offers for your actual drivers, vehicle and coverage. A premium above the average is not, by itself, evidence that you are overpaying.
The national figures, with their dates attached
These figures come from Tables 4 and 5 of the NAIC’s 2022/2023 Auto Insurance Database Report, adopted in December 2025. The latest observation in those tables is 2023.
| NAIC measure | 2023 | 2022 | What to keep beside the number |
|---|---|---|---|
| Countrywide average expenditure | $1,281.92 | $1,124.57 | Includes a mix of coverage purchases |
| Countrywide combined average premium | $1,438.60 | $1,257.31 | Sum of separate coverage averages |
The report calculates expenditure using liability, collision and comprehensive premiums divided by liability written exposures. Some vehicles in that denominator do not carry both physical-damage coverages. The combined figure adds the separate liability, collision and comprehensive averages, whose exposure populations differ.
That is why the larger combined number should not be relabeled “the average full-coverage quote.” It does not describe a standard policy with identical limits and deductibles for every driver.
Why a monthly equivalent is not a monthly bill
Dividing $1,281.92 by 12 gives $106.83, rounded to cents. This is an arithmetic monthly equivalent of the historical expenditure. It is not a payment offer, and it does not include a particular insurer’s installment schedule or fees.
For your own budget, use the complete term premium and the actual payment plan. If a six-month offer is $720, dividing by six gives $120 per month before any separately listed fees. Doubling it gives a $1,440 annualized comparison, assuming the same price for another six months. A renewal at that price has not been promised.
A useful comparison starts with the same purchase
Imagine that your current policy costs $900 for six months. A second proposal costs $760 but omits collision; a third costs $870 and retains the same selections. These are fictional figures, not market rates.
| Proposal | Six-month total | Difference from current policy | Next step |
|---|---|---|---|
| Current | $900 | Baseline | Record limits, deductibles and term |
| Proposal B | $760 | No collision | Obtain the same-coverage version before comparing price |
| Proposal C | $870 | Same stated selections | Check drivers, fees, forms and activation date |
The apparent $140 saving in Proposal B includes a change in protection. Proposal C has a $30 price difference for the stated comparison, but still needs document checks. Neither comparison needs the national average to establish its arithmetic.
What a benchmark cannot tell you
A national mean cannot identify the cheapest issuer for your circumstances, explain a specific renewal change or establish whether your coverage is adequate. It also cannot isolate the effect of age, vehicle, driving history or location: those differences are mixed together in a market-level measure.
When another website presents an average, look for the observation period, geography, insurer population, coverage selections and calculation method. An estimate for a defined driver profile can be useful, but it is a different measurement from actual written premiums across the market.
Build a budget you can actually use
- Establish the protection you want to compare. Use the coverage needs checklist to organize the questions.
- Obtain complete offers using the same application facts and selections.
- Record both the term total and the amount due to activate coverage.
- Include separately quoted payment charges and note any conditional discount.
- Check the issued documents against the accepted offer.
If a premium is difficult to afford, work through those steps before changing a deductible or removing coverage. A smaller payment can represent a different payment schedule, a different purchase, or both.
Questions about average costs
Is $1,281.92 a current US quote?
No. It is a historical 2023 expenditure measure. The report’s 2025 adoption date does not change the observation period.
Why not show an invented 2026 estimate?
An unsupported update would add precision without evidence. Current personal offers are more useful for a buying decision than extrapolating this historical average.
Should I aim to pay less than the average?
The average describes a mixed population. Compare the actual protection, service and total prices available to you rather than treating it as a target price.
Sources & references
Use these references to verify the information in this guide.
Policy terms and state requirements can change. Verify details with official sources and a licensed professional. Read our editorial standards.